Trade with India: import of 100 more items may be allowed

15 May, 2006

Pakistan is likely to allow import of 100 more items from India, from next fiscal year, out of the 286 items passed on by New Delhi through diplomatic channels and during the third round of Joint Study Group (JSG) held at the end of March.
In the joint statement issued at the end of JSG meeting, Pakistan had agreed to consider increase in importable items from India, in consultation with the stakeholders and fulfilment of legal requirements.
Sources in the government here told Business Recorder that Commerce Ministry had received a list of 286 items from India (271 through diplomatic channels and 15 at the JSG), whereas local business community had demanded permission to import 900 items.
After detailed comparison of both lists and keeping in view the interests of local industry, the Ministry identified 100 items, which would be included in the positive list, for the time being.
According to sources, preference would be given to those items on which duty is about 5 percent and are not locally manufactured.
They said that the list would be finalised at an inter-ministerial meeting to be held after the budget, after seeking approval from the Prime Minister and the Cabinet.
They further said that with the inclusion of 100 more items, the positive list would reach up to 882 items as the decision to import cement from India could be withdrawn after what the Economic Advisor to Finance Ministry, Dr Ashfaque Hasan Khan, said the prices of cement in the local market would come down in the Rs 270-272 range on sustained basis.
Presently, the trade volume between the two countries stands at less than $1 billion, and is very much in favour of India.

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